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Shipments of Small Displays Rise in June

EL SEGUNDO, CA — Despite a small rise in shipments in June driven by demand for smartphones and tablets, the worldwide market for small- and medium-sized display (SMD) panels is continuing to struggle with overall weak sales in the third quarter, according to a new IHS iSuppli Small & Medium Displays PriceTrak report from information and analysis provider IHS (NYSE: IHS).

Shipments of SMD panels, i.e. panels sized 1.0 to 9.x inches, climbed slightly in June to 188.5 million units, up 1 percent from 186.6 million in May. This marked the first sequential monthly increase since March.

“SMD panel shipments increased slightly in June because of continued strong demand among panel buyers for their smartphone and tablet lines, two products that remain popular among consumers,” said Vinita Jakhanwal, director for small and medium displays at IHS. “Panel buyers also are stocking up to keep inventories at reasonably adequate levels to meet demand for the third quarter and during the run-up to the holiday season. However, outside of the smartphone and tablet segments, the SMD panel market is being dogged by overall soft demand. Economic troubles in the U.S. and European markets have dampened consumer appetite for many electronic items in which these panels are utilized, while a government crackdown on illegal handsets in China is stifling SMD demand there.”

Amid strong demand, pricing for SMD panels for tablets is remaining high. Tablet prices in the third quarter for 7.0-inch and 9.7-inch panels will average $53 and $65 respectively.

In contrast, prices are declining for SMDs used in digital still cameras and personal navigation devices as demand decreases. “Consumer demand for digital still cameras and personal navigation devices has slackened off over time, due to the relative maturity of those products and their replacement by other devices including smartphones and tablets—giving rise to an equivalent falloff in SMD panel demand for those segments,” Jakhanwal said.

Among SMD panel manufacturers, fab utilization rates for the Taiwanese will average 61 percent in the third quarter, up from 55 percent at the end of June. Utilization rates are much higher among the Koreans, remaining at full capacity for LG Display and at 85 percent for Samsung Mobile Display.

IHS iSuppli

7 comments on “Shipments of Small Displays Rise in June

  1. Nemos
    September 10, 2011

    186.6 million units it is a huge number. Although some of the electronic devices is out of market and the lcd manufactures will lose some sales because of that reason,  we have plenty of new devices that are coming.

  2. Clairvoyant
    September 12, 2011

    That definitely is a high amount, and that's just for a month. It makes you wonder what happens to all of the older retired electronics that these replace. How well is the world recycling these products?

  3. Nemos
    September 12, 2011

    How well ? I think there is a huge gap in this sector because most of the companies is not responsible for its products after the sale. Furthermore,, it depends from the country and what recycle policy applies in general. You can imagine what is happening to developing countries……

  4. saranyatil
    October 9, 2011

    Good to see some increase in sale of at least small displays. Most of the time if you notice displays sizes go absolete with certain number and they do a new tool as an when it is required. If the size is close to the old ones certain materials can be reused.

  5. Wale Bakare
    October 9, 2011

    Are obsolete electronic/electrical and semiconductor components recycling get utilized optimally?

  6. itguyphil
    October 9, 2011

    What does a 'recycled' semiconductor get repurposed as? Or am I taking the term recycling too literally.

  7. electronics862
    October 31, 2011

    This will show a positive sign for the new products in the market which will definitely shows a better way ahead. These displays are useful in all gadgets starting from small like smartphones to big like desktops, TVs. 

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